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Oracle cancels $7 billion AI chip leasing deal with Tencent amid US pressure
Oracle canceled a $7 billion, five‑year chip leasing contract with Chinese internet giant Tencent. The agreement would have provided Tencent with up to 100,000 advanced AI chips for data centers in Southeast Asia. The cancellation came after U.S. officials raised concerns and Beijing urged Tencent to use domestic chips. The move reflects heightened U.S.–China tensions over AI chip access. Stock reactions showed Tencent up 1.10%, Oracle down 1.18% and Nvidia down 0.30% after the news.